What is the difference between a covered call and a normal call option and how to know which one I bought?

Asked 5 years ago

If you own the stock and buy a call is it automatically a covered call?

Osasere Okunloye

Monday, June 28, 2021

In a covered call, the investor sells his call option but has to own the equivalent amount of the underlying security. In a naked call, the investor also sells call option but does not own the underlying security. On most websites, you'll have to choose your preferred. You can contact your broker for more information.





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